or supervision of Chinese banks, for the following reasons:-
(a) Supervision would be very
6.
difficult, if not practically
impossible. I doubt if the
24
mere furnishing of returns would
be of any use.
(b) I am very doubtful if we would
in fact exercise supervision even if
wo had the statutory power.
(c) I do not think that a sufficient
case has been made out for
attempting this very difficult task.
(a) There wuuld probably be a difficulty
in defining the cls. There is
still diversity of opinion as to
I
what constitutes banking business; see
Hart on Biking, p.1.
(e) A were paper control would be worse
than useless.
Mr. Shenton proposes that the dyernor in
Council should have power to order an investigation by a
chart red accountant into the business of any banking
undertaking carrying on business in the Colony. This secr8
to me to be a very dangerous power. There would always be
a danger that it would be exercised too late, because if
exercised except in a bad case it might have a disastrous
effect on a banking undertaking which might otherwise have
succeeded. If this power failed to prevent a disaster the
Government would be blamed. The investigation might of
course be a very difficult, lengthy and complicated matter.
I am not in favour of this power being taken.
7.
Mr. Shenton also proposes power being taken to
apply for the winding up of any banking undertaking carrying